KeyBanc maintains underweight rating on Thor Industries stock

Published 05/06/2025, 10:14
KeyBanc maintains underweight rating on Thor Industries stock

On Thursday, KeyBanc analysts reaffirmed their Underweight rating on Thor Industries Inc. (NYSE: NYSE:THO) stock, keeping the price target steady at $65.00. The decision comes despite Thor Industries reporting robust fiscal third-quarter results that surpassed expectations on both top and bottom lines. According to InvestingPro data, the company currently trades at a P/E ratio of 19.75x, with analysis indicating the stock may be overvalued at current levels.

The analysts noted that while the company delivered strong results for the fiscal third quarter, it chose to maintain its fiscal year 2025 guidance, highlighting ongoing macroeconomic uncertainties. The anticipated challenges in the fiscal fourth quarter and early fiscal 2026 were cited as reasons for the cautious outlook. The company maintains solid fundamentals with a healthy current ratio of 1.71 and has impressively maintained dividend payments for 39 consecutive years, though InvestingPro analysis suggests net income is expected to decline this year.

Management at Thor Industries anticipates that fiscal year 2026 will perform similarly to fiscal year 2025, reflecting persistent macroeconomic challenges. The company continues to navigate a challenging retail environment, which is expected to impact investor sentiment in the near term.

The analysts highlighted the company’s current valuation, which is trading at approximately 20.5 times the lower fiscal year 2026 estimate. This is notably higher than the historical range of 7.0-16.0 times, prompting a cautious stance on the stock amidst a pressured retail environment.

In other recent news, Thor Industries reported a fiscal third-quarter loss per share of $2.53, surpassing both Citi’s and the consensus estimates. The company’s adjusted EBITDA reached $255 million, exceeding expectations and last year’s figure. Despite these results, Thor Industries maintained its fiscal year 2025 guidance, indicating potential challenges in the upcoming quarter. In response to the company’s performance, Truist Securities raised its price target for Thor Industries to $86, maintaining a Hold rating, while KeyBanc increased its target to $65 with an Underweight rating. Meanwhile, Thor Industries declared a regular quarterly cash dividend of $0.50 per share, emphasizing its commitment to shareholder returns. Additionally, Thor Industries announced a strategic restructuring by integrating Heartland Recreational Vehicles under the Jayco brand to enhance operational efficiencies. This restructuring is expected to improve brand performance and streamline business processes. The company also issued forward-looking statements, highlighting risks such as inflation and geopolitical events that could impact future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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